Businesses and customers hit by bank failure backlog

26 Jun 12

Millions of RBS, NatWest and Ulster Bank customers, including businesses, are facing continuing disruption following last week's computer failure.

The technical issue left many businesses affected, with some unable to pay suppliers or meet payroll - in some instances the knock on effect meant that employees could not pay bills in time. Customers continue to face difficulties in accessing their money or moving money between accounts.

The RBS Group, which includes three banks, has now fixed the initial technical problem but is continuing to deal with a back log of payments as a result. Around 1,200 branches opened on Sunday to help customers deal with the build-up, with many of them continuing to stay open later than usual this week.

According to the Telegraph, the disruption is estimated to have caused problems for around 17.5 million business and personal customer accounts. The overall cost to customers and businesses as a result of the disruption is yet to be valued, although one banking industry source for the Reuters news agency estimated it would cost up to £100 million.

RBS Group Chief Executive Stephen Hester apologised to RBS customers and those affected from other banks for the disruption and inconvenience.

RBS said: "We will ensure that no customers will be out of pocket as a result of these issues."

"We can confirm that any fees and charges incurred by customers will be fully refunded. This includes charges levied by a third party; for example, if you were late paying a non-RBS credit card or mortgage because your account wrongly showed there wasn't sufficient cash."

"For our current account customers, we will automatically waive overdraft fees and charges."

RBS has also said there should be no adverse impact to individual credit ratings, if for instance, the bank failed to make a credit card payment on time.

RBS will launch an investigation into the causes of the glitch and is urging customers affected to either contact the bank or visit their local branch.